The Securities and Exchange Board of India (SEBI) established the National Institute of Securities Markets (NISM) in Mumbai to encourage research and study in the field of stock exchange and security market. The NISM certification exam focuses on generating awareness about the stock market among trading members, stockbrokers, and clearing members.
Structure of the NISM Certification Examination
The course includes basics of the securities market, knowledge competencies, and the trade life cycle. It also involves the knowledge of the functioning of the front office, middle office, and back office in broking firm.
The NISM certificate exam can be scheduled according to the date and the test centre. It includes a hundred questions that you need to answer in two hours. For each question you get wrong, there is a 25 percent deduction of marks. A candidate has to score at least 50 percent in the examination to pass.
Validity and expiry of the certificate
The certificate comes with a limited validity period of three years as defined by SEBI. When the certificate is about to expire, the person has the option to revalidate it. One can either clear the relevant NISM certification examination before the certificate expires or complete the one-day program of CPE, which is, Continuing Professional Education as specified by NISM.
Benefits of NISM certification
The NISM courses to start a career in finance are one of the best choices to make. There are multiple advantages of clearing the NISM certification exam. The certificate carries great value, and the certificate holders can play an important role in the stock market. Also, a person can only trade in mutual funds if he or she owns the NISM certificate. Here are primary benefits of NISM certification:
1. Clear understanding of Risk Management Strategies
The course gives you all the details related to the subject of stock and security markets. You learn to estimate and handle the risks which form an important part of the security market. This further helps in handling investor complaints.
2. Detailed knowledge of Indian Securities Market
Stock Market is layered and demands better clarity. The NISM certification course introduces you to the market and tells you further about the legalities of the same. The person can take informed decisions with available resources.
3. Attractive Income
NISM certification not only brings in knowledge but also brings in heavy rewards. There are firms who offer huge packages to individuals with NISM certification. It gives you great kickstart for a career in finance and commerce.
4. Increased Employment Opportunities
NISM certification is always in demand. Companies are always on the lookout for NISM certified professionals. You have great hiring opportunities, and you can also venture into your own business.
5. Respectable Status in Society
With NISM Certificate in hand, your value as a professional increases and the job is one of the respectable positions. With NISM certification, you can differentiate yourself from a normal broker who works on instincts.
If you are seeking a beneficial career in commerce and finance, then an NISM certification is highly recommended. It will add a niche to your skills, generating further benefits.